Orbitcast - Is a Sirius, Liberty and WorldSpace deal looming?


Staff member
Oct 7, 2008
Back in late September, whispers started whirling that Liberty Media was planning on taking its satellite radio game worldwide.

And today at the Reuters Global Media Summit in New York, Sirius XM Radio Inc. CEO Mel Karmazin didn't necessarily squash such speculation.

"We understand that Liberty has expressed an interest in WorldSpace," said Karmazin.
But don't think that Sirius XM would contribute money to the partnership, Karmazin is obviously focused on profitability (and rightly so). Instead, it's Sirius' know-how in the marketplace that is the true added value.

"We would put our expertise and experience in the pot and Liberty would put their money in the pot," Karmazin said.

And what expertise could Sirius XM offer? In particular, partnerships with automakers. Afterall, WorldSpace has only managed to strike a deal with Fiat thus far, while Sirius XM have relationships with countless automakers - many of which are international.

"So one would think that if Liberty were to do something there that they would want as strategic partner somebody who has successfully done satellite radio in 5 percent of the world," Karmazin said.

In addition to relationships with auto manufacturers, Sirius XM could also offer expertise in building satellite radio equipment, Karmazin added.

Sounds interesting, but not without its challenges. What do you think? Would a global satellite radio operation be a success? Or be setup for failure?

[via Reuters]
Thanks Bob!

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